Indonesia’s cryptocurrency market is going through a period of transformation and evaluation, reflected in declining tax revenue and upcoming regulatory changes. As Bitcoin experienced a significant increase in value in 2023, the country saw a drop of more than 60% in crypto tax revenue compared to the previous year, prompting worries about the efficiency of the existing tax system. This comes as former employees of FTX and Alameda invest $17 million in a new crypto exchange startup. Dual taxation is imposing a heavy burden on cryptocurrency transactions. Introduced in May 2022, Indonesia’s two-tiered tax system on cryptocurrency transactions has faced backlash for possibly impeding the expansion of the market. The tax system for digital currency, which was first implemented when it was categorized as a commodity, is currently being reevaluated by the Ministry of Finance under Sri Mulyani’s leadership. The government is being encouraged by stakeholders, such as the Commodity Futures Trading Supervisory Agency (Bappebti) and domestic exchanges, to reassess the current tax regulations. Tirta Karma Senjaya, the leader of CoFTRA’s Market Development and Development Bureau, stressed the importance of regularly reviewing taxes due to the changing nature of cryptocurrencies and their potential for generating future income. Local exchanges are worried that the current high tax rates are deterring user activity and pushing users towards unregulated platforms. They support a streamlined tax system, possibly with just one income tax, to create a more stable and competitive atmosphere for legitimate cryptocurrency businesses. Currently, Bitcoin is being traded at $61,733. Diagram: TradingView.com.